Extended Warranties

Do you purchase the extended warranty on things you buy? 

Things like televisions, computers, stereos, washers, fridges, etc???

Personally I don’t.  Most large purchases come with some manufacturer’s warranty be it 30 days or a year, and my thought process has been that if the item doesn’t break, blow up, or stop working during this time period, it won’t and should last me the rest of my life.

Well the lasting the rest of my life may be a stretch, but the item should last a while.

Now the OFT/Office of Fair Trading, has looked into the retailers and those offering extended warranties and have found a lack of competition has caused consumers to be ‘ripped off’.   These extended warranties are promoted and pushed on consumers at the point of sale and it can be a bit of an odd experience if you are not ready for it.  You buy your TV, and as you go to pay the clerk or sales persons asks if you want to protect your purchase with an extended warranty.  The warranty covers this, that and the other forever and you will never have a problem or issue and it is the best thing since sliced bread.

Of course I exaggerate, a lot, but you are told the benefits of this warranty and have to make a split second decision right there and then!  No pressure there.

And if you say no, or refuse, they may remind you that you cannot get this fantastic warranty after you leave the shop, and if the TV breaks you are stuck.  I am exaggerating a bit, but in all truth, I did have a sales person in essence say all that to me.

Now you can read the full OFT report at your leisure as you do with all of the OFT’s reports, but this is something that probably did need looking into. In some instances you wind up paying for a warranty that the cost of the warranty itself is near or as much as the item you purchased!

You need to get all the facts, then make an informed decision and purchase. Research the repair history for the item you wish to buy, how much is the extended warranty, and what does the warranty cover??

Now I am not saying all extended warranties are bad, personally for me, I don’t buy them, but there must be a reason why the OFT has looked further into this.